ArcBest Corp (ARCB)
Fixed asset turnover
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,183,830 | 4,422,890 | 5,336,500 | 3,996,140 | 2,942,940 |
| Property, plant and equipment | US$ in thousands | 1,066,050 | 914,824 | 800,170 | 695,921 | 678,690 |
| Fixed asset turnover | 3.92 | 4.83 | 6.67 | 5.74 | 4.34 |
December 31, 2024 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $4,183,830K ÷ $1,066,050K
= 3.92
The fixed asset turnover ratio for ArcBest Corp has shown a generally positive trend over the years, increasing from 4.34 in December 31, 2020 to 5.74 in December 31, 2021, further rising to 6.67 by December 31, 2022. This indicates that the company is generating more revenue per dollar of fixed assets invested, reflecting efficient utilization of its fixed assets to generate sales.
However, there was a slight decline in the fixed asset turnover to 4.83 by December 31, 2023, and a more significant decrease to 3.92 by December 31, 2024. This suggests a potential decrease in sales generated relative to the level of fixed assets during those years.
Overall, while the company initially showed improved efficiency in asset utilization, the decreasing trend in the later years may warrant a closer examination of the company's fixed asset management practices to ensure optimal utilization for revenue generation.
Peer comparison
Dec 31, 2024